Pernod Ricard to Restructure French Activities
October 01 2019 - 11:54AM
Dow Jones News
By Olivia Bugault
Pernod Ricard SA (RI.FR) said Tuesday that it will restructure
its French activities in order to return to growth in its domestic
market.
The French premium spirits company said that its French model
based on two subsidiaries--Pernod and Ricard--is "overly complex
and lacks agility," and the company therefore decided to change its
structure.
The proposal includes the merger of the two subsidiaries into a
single entity called Pernod Ricard France, with effect from July 1,
2020. The proposed merger would lead to about 280 potential
redundancies, Pernod Ricard said. However, the revamping would also
create around 90 new positions, it said.
The strategy also includes the proposed disposal of two of its
French businesses--the Cafe de Paris brand and the Cubzac
production site to InVivo Wine, the company said.
The reorganization follows a 60 million euros ($65.5 million)
loss in French sales in two years, Pernod Ricard said.
Write to Olivia Bugault at olivia.bugault@dowjones.com
(END) Dow Jones Newswires
October 01, 2019 12:39 ET (16:39 GMT)
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